Petroleum Africa
Find us on: 
Wednesday, January 24, 2024
Final negotiations for the financing and construction of Uganda’s $4 billion domestic refinery began this month after Alpha MBM Investments from the United Arab Emirates was chosen by the government of Uganda as preferred bidder.
The breakthrough was announced by Ruth Nankabirwa, Uganda’s Minister of Energy and Mineral Development, at the first of a series of press conferences due to run quarterly giving up-to-date overview of the country’s transformative oil and gas project.
After private sector partners had been considered for the refinery, she said that in June Ugandan President Yoweri Museveni directed public sector ownership be considered for the refinery.
“The Ministry of Energy and Mineral Development engaged stakeholders to develop a strategy for the refinery project and received Expressions of Interest (EOIs) from several potential investors and evaluated,” she said.
“After thorough consultations and evaluations by the government, a Memorandum of Understanding (MoU) was signed on December 22, 2023 between the Government of Uganda and Alpha MBM Investments LLC from the United Arab Emirates, outlining cooperation and negotiation terms for the Refinery Project. I am happy to report negotiations of the key commercial agreements between the Government and Alpha MBM Investments LLC commenced on 16th January 2024 and are expected to be concluded within three months.”
Progress on the refinery project is among the most significant developments announced by the minister. Four investment groups had expressed interest in the refinery project but Alpha MBM, which began preliminary talks with the Ugandan government last September, was successful.
Final talks began between the two sides on January 16 in Kampala for what will be East Africa’s first major refinery, ending the region’s reliance on refined products imported expensively from overseas.
And the construction of the refinery at Hoima in the west of the country will transform Uganda’s energy security profile as it will no longer rely on neighboring countries for transshipment of critical fuel supplies.
As well as driving down costs of petrol, diesel and other fuels, the refinery will also drive a key part of Uganda’s Energy Transition Plan, as it will produce the Liquefied Petroleum Gas that is a key component of the country’s `clean cooking’ initiative.
" alt="First LNG Realized at the Greater Tortue Ahmeyim Project">
" alt="United Energy Acquires Western Desert Producer APEX">
" alt="Baker Hughes Announces Major Gas Technology Orders for Venture Global LNG">
" alt="ReconAfrica: Naingopo Results Demonstrate a Working Petroleum System">
" alt="Tullow Highlights 2025 Operational Plans in Ghana">
" alt="TotalEnergies to Supply 1.5 TWh to STMicroelectronics in France Over 15 years">
" alt="Rockhopper Reaches Final Settlement with United on Egypt’s Abu Sennan Concession">
" alt="Oil & Gas Crucial for African Growth: AEC Calls for Industry Support to Defend African Market">
